Overview

• The RBI issued seven directions on Sept. 29, with three taking effect from Oct. 1 and four draft measures open for public comments until Oct. 20.
• Banks may now reduce non–credit risk spread components on floating-rate loans before the earlier three-year lock-in, enabling faster pass-through of policy cuts to EMIs.
• At interest reset points, lenders may at their discretion offer borrowers a switch from floating to fixed rates on personal loans.
• Working-capital loans secured by gold or silver now extend beyond jewellers to manufacturers using these metals as inputs, including through Tier-3 and Tier-4 urban co-operative banks, with use barred for investment or speculation.
• Basel III changes raise the eligible limit for overseas Additional Tier-1 PDIs, while draft proposals would extend gold metal loan tenors to 270 days, align LEF and ITE norms for foreign bank branches, and shift credit reporting to weekly with CKYC and faster error fixes.